House Valuation Came in Lower, Seller Stalling

paakofi

My OH and I are looking to buy our first house.

Found what we think is a lovely house in NW London.

The house had originally been listed at 310 (early 2008) but had fallen to 289 by the time we saw it (around xmas)

It was under offer then though, so we asked to be notified if it ever came back on the market and got a call in the middle of January that it was but at the reduced asking price of 279.

We were a bit too naive and made an offer of 270 that was promptly accepted and everything has carried on well since then until the home buyer valuation came in at a much lower than expected 255.

The valuation came up with a few things that needed to be fixed immediately as the previous occupiers hadnt taken very god care of the place. All of this came about to around 10K.

We initially went back to the EA and changed our offer to 245 but the seller wasnt having any of it so after much negotiations we agreed to raise the offer to 250 [take it or leave it]

I've just a call from the EA [foxtons] telling us the seller has received another offer for 280 that he intends (or already has... wasnt very clear) and that if the new buyer's valuation came in higher, then he'll take that one or else he'd give me a call.

I'm wondering if there's anything underhand going on here as the EA had initially mentioned him not being able to take another offer while mine was still on the table.

Can any of you seasoned buyers/sellers tell me what to do? The EA has been trying to convince me to pay higher than the valuation but at the very worst, I'll pay valuation price and nothing more...and still feel cheated out by a few grand.

Any input will be greatly appreciated

WillowCat

The valuation should be for the condition the property is in at the moment.

If it's £255k and needs £10k of work then the valuation when work is done should be higher (disregarding market movements).

However, you're slap bang in the stamp duty distortion so I'd say you're correct that £250k should be your final offer.

Just my opinion......

lynzpower

We initially went back to the EA and changed our offer to 245 but the seller wasnt having any of it so after much negotiations we agreed to raise the offer to 250 [take it or leave it]

I've just a call from the EA [foxtons] telling us the seller has received another offer for 280 that he intends (or already has... wasnt very clear) and that if the new buyer's valuation came in higher, then he'll take that one or else he'd give me a call.

I'm wondering if there's anything underhand going on here as the EA had initially mentioned him not being able to take another offer while mine was still on the table.

Can any of you seasoned buyers/sellers tell me what to do? The EA has been trying to convince me to pay higher than the valuation but at the very worst, I'll pay valuation price and nothing more...and still feel cheated out by a few grand.

Im afraid this is a very common practice of our freinds at Foxtons. They are well known throughout the industry of stretching the truth, to downright barefaced lying.

I personally would go, Oh ok then, clearly they will take the 280 offer, altohugh clearly if they have a surveyor around they will more as likely be telling the new buyer ( who probably doesnt exist, but play along with foxtons they really do deserve it) that the prop is worth 250.

This is a falling market london has some cracking properties and the city is awash with unsold stuff. I saw a number of 3 bed houses in an EA window the other day ( different area though) for 230, we will still wait theres only one way prices are going in this city and its downward.

Hold your nerve.

WillowCat

lynzpower wrote: »

Im afraid this is a very common practice of our freinds at Foxtons. They are well known throughout the industry of stretching the truth, to downright barefaced lying.

Oops hadn't noticed it was Foxtons.

Bargepole, don't & touch spring to mind. Lynzpower's spot on.

skap7309

lynzpower wrote: »

I personally would go, Oh ok then, clearly they will take the 280 offer, altohugh clearly if they have a surveyor around they will more as likely be telling the new buyer ( who probably doesnt exist, but play along with foxtons they really do deserve it) that the prop is worth 250.

Hold your nerve.

Exactly what i was thinking......

Back to square one for both the EA and seller if that is the case. As said, play along with it, all they are doing is allowing the market to fall further and the next valuation to be even lower.

paakofi

Thanks for the responses everyone... I'm OK for not getting the house if i'm paying too much for it... but just wondering whether there are any obligations the EA has to us before they can accept another offer... especially if they're claiming the new offer is higher than our original offer

QTPie

paakofi wrote: »

Thanks for the responses everyone... I'm OK for not getting the house if i'm paying too much for it... but just wondering whether there are any obligations the EA has to us before they can accept another offer... especially if they're claiming the new offer is higher than our original offer

No, no legal obligations... One could suggest that there might be a "moral obligation", but you are dealing with estate agents... :rolleyes:

It is dirty tricks and shouldn't be allowed, but it happens unfortunately. It can happen to both sides too: as a seller we were gazundered in January (the buyer demanded a £40k reduction BEFORE doing the survey - after stringing us along for a month). We didn't accept and the sale fell through. Obviously that is completely different to your situation (you were negotiating after a survey - which is very reasonable). Now we have a new offer (for the same amount as the previous offer) from a cash investment buyer who doesn't require a survey at all (he is an established architect). So - assuming this sale goes through ok - the only people who would have lost out, in the end, would be those original buyers... They missed out on a gorgeous house which WAS reasonably priced at the time... :rolleyes:

Stick to your guns and start looking elsewhere too - you may find something even better. Hopefully Karma is in force and things turn out good for you in the end

Let us know what happens.
QT

pinkshoes

Until you exchange contracts, the EA can (and will) do what they like.

Higher price = more commission for them!!

They're probably lying about the other offer, so just phone them up, tell them your offer of £245k will stand for 7 days, and if not accepted you are no longer interested.

BlackButterfly737

Don't up your offer. I was in the same position, offered £320k, house valued at £290k. Changed offer to £290k. Seller refused. I said thanks and was prepared to walk away. A week later they asked if I was still interested at £290k. Sale is going through and exchanging next week. pinkshoes is spot on!